Tag Archives: Reserve Bank

TPP and the fallacy of free trade

Tomorrow there will be nationwide protests around New Zealand against the TPP agreement. Most of the opposition quite rightly centers around the agreement being less a pure free trade agreement between equal partners but rather a Corporate Bill of Rights, challenging national sovereignty on a whole host of areas that potentially crimp corporate profit making […]

National and Labour in denial on housing affordability

National’s big election initative on housing was a woeful anti-climax. The offer to top up qualifying first home buyer’s Kiwisaver deposits does nothing to address affordability. Indeed if the First Home Buyer subsidies of Australia and Britain are any indication it will drive affordability further out of reach as rising prices more than outweigh slightly larger […]

Print some money for Christchurch

The debt problems of the Christchurch and Auckland City Councils have been in the news of late. Now I’m not going to defend the records of the last few administrations in those cities. In Auckland in particular there seems to be a meglomaniac desire to become a “global centre” with all the trappings, to play […]

Your money starts life as debt – Its official!

If there was any remaining doubt the Bank of England has confirmed what heterodox economists have been saying for decades. The economic text books are wrong. Banks do not accept deposits from savers and intermediate them into loans to borrowers. Nor do they rely on the multiplier effect or are limited by reserves. The loans in fact […]

Housing Crisis? Affordability Crisis more like

The “Housing Crisis” is somewhat of a misnomer. What New Zealand, and Auckland in particular has is not a shortage of dwellings but a lack of affordable housing, and two main political parties dead set on keeping it that way. For all their talk, Labour does not want to see any price correction for existing […]

How we should fund our economy – Public credit not debt

The key is to fix our financial system. Our economy has failed due to malfeasance — financial, corporate, regulatory and political. We need a new financial system we can trust, not a new wig on our old pig. – Laurence J. Kotlikoff, professor of Economics at Boston University The recent banking fiasco in Cyprus and […]